Quiz on Managerial Economics

What is the primary focus of Managerial Economics?

• Studying historical economic data

• Making informed business decisions

• Analyzing market trends

• Understanding consumer behavior

Which of the following best describes the Law of Demand?

• Demand is constant regardless of price

• As price decreases, demand decreases

• As price increases, demand decreases

• Demand increases with an increase in income

What does demand elasticity measure?

• The average price of goods

• The change in demand due to price changes

• The total demand in the market

• The relationship between supply and demand

Which type of demand elasticity indicates that demand is highly responsive to price changes?

• Inelastic demand

• Unitary elastic demand

• Perfectly inelastic demand

• Elastic demand

What is a key factor in demand forecasting?

• Consumer income levels

• Government regulations

• Current market prices

• Historical sales data

Which method is commonly used for demand forecasting?

• Qualitative analysis

• Random sampling

• Cost-benefit analysis

• Market segmentation

What does the term 'demand forecasting' refer to?

• Estimating future demand for a product

• Calculating current demand

• Analyzing past sales data

• Determining production costs

Which of the following is NOT a function of Managerial Economics?

• Tax collection

• Profit maximization

• Market analysis

• Resource allocation

What is one advantage of using Managerial Economics?

• It simplifies all economic concepts

• It guarantees profit

• It provides a framework for decision-making

• It eliminates all business risks

Which of the following factors does NOT govern demand forecasting?

• Employee satisfaction

• Technological advancements

• Economic conditions

• Consumer preferences